week 7 discussion questions

“Capital Budgeting” Please respond to the following:

• Provide an example of how you would use simulation in multinational capital budgeting. Determine what this approach can do that other risk adjustment techniques cannot.
• From the Blades Invest in Thailand case, since future economic conditions in Thailand are uncertain, determine the alternative you think is most feasible. Explain how critical the salvage value is in the alternative.

Sources:

Madura, J. (2012). International financial management (11^thed.). Mason, OH: South-Western Cengage Learning